Binance accused of "demanding" Limitless Labs 8% of new Token for listing. Photo: Blockhead
Drama breaks out
- The incident between Binance and Limitless Labs is shaking the global crypto community, as a series of evidences, statements and counter-claims are continuously released.
- The incident erupted when CJ Hetherington, CEO of Limitless Labs - a startup specializing in prediction markets, blockchain and AI - posted on X about an offer allegedly from Binance, in which the exchange requested about 8% of Limitless' total token supply, along with cash and Token deposits to ensure the listing process.
Offer from @binance :
— CJ (@cjhtech)October 14, 2025
> 1% Airdrop on day 1, alpha listing
> 3% further airdrops in 6 months
> 1% for "marketing" at Binance full discretion
> provide 100% of TVL for Token pool on Pancake Swap ($1M+)
> $250k security deposit
> 3% reserved for BNB HODLer program
> $200k…
- Meanwhile, Limitless Labs is a project backed by Coinbase Ventures and Base Ecosystem Fund, causing this allegation to quickly cause a stir among investors and the crypto community.
- In response to these rumors, Binance responded strongly, stating that they were aware of CJ's statement but completely rejected it as false and defamatory. The exchange affirmed its right to sue, and expressed surprise at CJ's unauthorized and illegal disclosure of confidential communications with Binance, saying that this action would damage the trust and security of information in the industry.
Offer could be up to 9% Token and $2.25 million
- According to sources at Bankless , the proposal Limitless announced could be much more complicated than the initial 8% figure.
- The leaked agreement shows that Binance may have asked for a total of 9% of the Token , Chia into Airdrop, marketing, BNB holder incentive programs, and liquidation operations, along with a $2.25 million deposit for spot listing.
- If this information is true, this is no longer a regular listing fee, but a huge financial package that the project must meet to be listed on Binance, something that has never been made public before.
- In an official response posted on X, Binance emphasized that they “do not profit from the Token listing process” and do not impose any “listing fees”.
- According to the exchange, the cash or Token required are only collateral deposits, used to ensure transparency and commitment of the project, and can be refunded after 1-2 years .
- Binance also denied the information that the exchange's leaders "Dump" Token from listed projects, stating that this was a false rumor.
Community: “This is not the first time”
- The matter became more complicated when Mike Dudas , founder of 6MV and former investor of The Block, spoke up:
“I can confirm that I have seen identical listing proposals from Binance in the past month. I did not sign any NDAs, so they cannot threaten me legally. Binance has been using this tactic for years.”
a leopard never changes its spots
— Mike Dudas (@mdudas) October 14, 2025
i can confirm that i've seen binance tge listing proposals of the EXACT same nature of cj's at limitless in the past month
and i signed no nda so can't be legally fudded out of talking about it
binance has been running the same playbook for years https://t.co/XpnoWD4Qbk pic.twitter.com/oMAqFWFiSz
- At the same time, Jesse Pollak , founder of Base (Coinbase), also criticized this type of fee model as “exploitative and stifling innovation”, emphasizing that listing should have zero cost, especially for startups.
It should cost 0% to be listed on an exchange. https://t.co/KBt1o74Bs9
— jesse.base. ETH (@jessepollak) October 14, 2025
- Before the incident cooled down, Changpeng Zhao (CZ) - Binance founder - also gave a cryptic response, aimed directly at CJ:
“This guy is really a celebrity, how pitiful. I didn’t even know who he was until he posted a fake photo saying I blocked him. I chose to stay silent. Ignoring him is the best way to reject him.”
Wow, this guy is really clout chasing, but what a loser. I didn't even know who he was until he posted this fake image saying I blocked him.
— CZ 🔶 BNB (@cz_binance) October 14, 2025
I could make it real. But I will choose Mute instead. Ignore is the best rejection. 🤣 https://t.co/BJBdu7S4zM pic.twitter.com/TKl9pBTOCH
Pressure to withdraw assets from the floor
- According to on-chain data from Nansen, centralized exchanges (CEX) are witnessing a large wave of asset withdrawals , with Binance leading the way with a total withdrawal value of more than $21.75 billion in just the past 7 days.
Over the past few days, centralized exchanges have seen significant asset outflows, with #Binance experiencing the largest outflow — $21.75 billion over the past seven days. https://t.co/HW9ViO6mPV pic.twitter.com/8ArclaL8sB
— CoinGlass (@coinglass_com) October 15, 2025
- Although the direct cause is unknown, many observers believe that the dispute with Limitless Labs may have contributed to a temporary loss of investor confidence, especially in a cautious market after recent strong liquidations.
- In another notable development, Binance still strongly launched 2 support packages to compensate for the losses of users after the terrible dump on October 11. After compensating 283 million USD to traders who suffered losses due to the exchange's errors, last night the exchange continued to announce a support package of 400 million USD to reassure investors.
- Accordingly, the exchange will allocate 300 million USD in the form of vouchers worth 4-6,000 USD to traders who are liquidated and have losses of 50 USD or more (accounting for at least 30% of total assets); at the same time, spend an additional 100 million USD to support institutional investors. In total, nearly 700 million USD has been "poured" by Binance in just the past week.
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